Mid Year Review
by Jim Scott

Mid-year Report
The seven year recession in residential housing in San Diego is finished.  Prices in Mission Hills are now fifteen percent higher than they were at the bottom of the market, which occurred in the winter of 1994-5.  The inventory of homes available in Mission Hills is one-third the level of just two years ago. The local economy is creating jobs and interest rates are low.  

The Inventory Problem
     
Given the above facts, it would seem logical that more homes would be available for sale. A seller can  reasonably expect that a sale will occur within sixty days.  Owners do not have to provide additional incentives to buyers or agents.  They can generally dictate the terms of a sale and should negotiate reduced commissions. This has not been a given in the past. 
     
In my opinion, the inventory is low for several reasons.  First, prices adjusted for inflation remain below 1986 prices and are fifteen percent below the market top of 1990. This means that many potential sellers do not have enough equity to sell or trade for a more expensive property.  Second, many owners are waiting for a possible cut in the capital gains tax for personal residences. Third,  some potential sellers are waiting for prices to increase even further. All of the above collectively result in  lower inventory.
Prices 
    
Prices are moving up in all neighborhoods in San Diego but at moderate rates.  The twenty-five percent annual increases experienced in the 1970s’ and 1980s’ are distant history that probably will not be repeated. National inflation and the Cold War  were the engines of local real estate prosperity in the past. Since both are not likely to return, only growth  in community income and low inflation  will push up prices at rates above ten percent per year.   Even though homes will sell more quickly and buyers will have to work harder to buy them, price increases will remain moderate.

Concerts in the Park

I am pleased to announce that Scott & Quinn will underwrite the concert series to be held in Pioneer Park this summer.  It is my way of saying thank you to the community that has been  wonderful to my family and my business over the past twenty-one years.  I also want to commend the Mission Hills Association for organizing the series as it is a real benefit to our neighborhood.                    
 

You can reach Jim Scott by email or at his office at 1111 Fort Stockton Drive. Jim's direct line is 885-9511. Jim has been a homeowner in Mission Hills since 1976. Scott & Quinn is the oldest full service real estate company in Mission Hills. There is also a professional property management team on staff.